ECB Adviser Suggests Regulated Euro Stablecoins Could Complement Digital Euro Against US Dollar Dominance

Key Points

1. ECB adviser Jürgen Schaaf highlights the importance of distributed ledger technology (DLT) in Europe’s digital payments framework.

2. The ECB has advanced the digital euro project to its preparation phase, with a final launch decision expected by the end of 2025.

3. Regulatory challenges exist due to disparities between the US GENIUS Act and the EU’s MiCA regulation, affecting cross-border stablecoin adoption.

4. The ECB’s strategy includes supporting MiCA-compliant euro stablecoins and developing the digital euro to enhance monetary sovereignty.

5. Europe is adopting a multi-pronged approach, combining public CBDCs, regulated stablecoins, and private innovation to counter US dollar dominance.